I examine the impact of management cash flow forecasts on investors and analysts. The news in management cash flow forecasts is priced beyond total earnings news. Analysts revise earnings forecasts more for the news in these forecasts than for the news in accruals. I further find that the market’s higher pricing of cash flow forecast news is greater for firms 1) with bad earnings news, 2) in fi...

Changes in stock prices have substantial explanatory power for U.S. investment, especially for longterm samples, and even in the presence of cash flow variables. The stock market dramatically outperforms a standard q-variable because the market-equity component of this variable is only a rough proxy for stock market value. Although the stock market did not predict accurately after the crash of ...

This paper empirically examines whether additional future fixed capital and R&D investment expenditures induce firms to accumulate cash reserves while considering the role of market imperfections. Implementing a dynamic framework on a panel of US, UK and German companies, we find that firms make larger additions to cash holdings when they plan additional future R&D rather than fixed capital inv...

This paper is an attempt to analyze the impact of income taxes and market capitalization on fixed investment (investment in tangible assets) by manufacturing companies listed on KSE. This paper basically examines that how corporate income taxes affect fixed investment by reducing cash flow available for a firm to invest and how the firm size in the lights of market capitalization affects fixed ...

The purpose of this paper is to develop a general equilibrium model with money and trade taking place at disequilibrium prices. There are multiple markets being visited sequentially and transactions occur along the adjustment path. This implies quantity rationing to clear the market and we assume that there are cash-in-advance constraints on the transactions. The updating of the prices and cash...

This paper empirically examines whether additional future fixed capital and R&D investment expenditures induce firms to accumulate cash reserves while considering the role of market imperfections. Implementing a dynamic framework on a panel of US, UK and German companies, we find that firms make larger additions to cash holdings when they plan additional future R&D rather than fixed capital inv...

and his coauthors begin from the observation that it is difficult to distinguish that specification from an alternative one in which the drift in log consumption growth is itself a highly persistent covariance stationary process with low conditional volatility but high unconditional volatility. Thus, the drift itself is almost but not quite a random walk. The high unconditional volatility of th...

The emergence of the Internet has pushed many established companies to explore this radically new distribution channel. Like all market discontinuities, the Internet creates opportunities as well as threats – it can be performance-enhancing as readily as it can be performance-destroying. One industry where this certainly holds is the newspaper industry, where several players have rushed to supp...

The third generation technology will confer to mobile phones all the capacity and speed of a fixed line phone with the additional flexibility of mobility. Major investments in 3G installation facilities are planned in developed economies; the reported investment plans indicate “leader-follower” patterns. Using three real competition options models, we determine the optimal timing of 3G investme...